- EUR/GBP drops to the lowest since June 24, down for third consecutive day.
- MACD teases bears below important DMAs, three-month-old support line in focus.
EUR/GBP takes offers around 0.8560, down 0.11% intraday, amid Tuesday’s Asian session. In doing so, the quote prints a three-day downtrend after reversing from a convergence of 100-day and 50-day SMA (DMA) during the last Thursday.
Given the MACD line teasing the downside break below the signal indicator, coupled with the sustained trading below the stated SMA confluence, EUR/GBP bears remain hopeful around a one-week low.
That said, an ascending support line from early April, near 0.8540, gains the market’s attention. However, any further downside will be probed by the previous month’s low of 0.8530.
In a case where EUR/GBP bears remain dominant past 0.8530, the 0.8500 threshold may offer an intermediate halt during the fall to the yearly bottom surrounding 0.8470.
Alternatively, the 0.8600 round figure may lure short-term buyers should the pair reverses, a break of which will again highlight the DMA confluence area around 0.8610.
Even if the EUR/GBP bulls manage to cross the 0.8610 hurdle on a daily closing basis, the monthly high of 0.8615 will act as a validation point for the pair’s further upside.
EUR/GBP daily chart
Trend: Further weakness expected